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AIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

8 March 2025

Unsupervised Learning (Glossary)

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Unsupervised learning comes from the fields of artificial intelligence and big data. The term means "unsupervised learning" and describes a special method of how computers gain knowledge from data without humans telling them in advance what is right or wrong.

Imagine you give a programme thousands of customer data without asking it which product these customers are interested in. The system automatically searches for patterns, such as groups of people with very similar interests or purchasing behaviour. In this way, a company can find out which customer segments exist without having to define them beforehand.

An illustrative example: In an online shop, an algorithm analyses which products are frequently bought together without anyone telling it which combinations to look for. The system itself discovers that customers who buy toys often also choose children's books. This insight can later be used for targeted recommendations.

Unsupervised learning therefore helps to find hidden correlations and use large amounts of data efficiently - without any fixed human specifications.

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